China’s A-share market experienced a significant surge, with the combined turnover of the Shanghai and Shenzhen stock exchanges surpassing 2.5 trillion yuan. This surge occurred on Monday, marking the final trading day before the week-long National Day holidays. The Shanghai Composite Index rose by 8.06 percent, reaching 3336.5, while the Shenzhen Component Index closed 10.67 percent higher. Notably, the ChiNext Index, which tracks China’s growth enterprises akin to Nasdaq, saw a remarkable increase of 15.36 percent.
The rally extended to various indices, with the index representing 50 major companies listed on the Beijing Stock Exchange soaring by 22.84 percent. Both the Beijing bourse index and ChiNext Index achieved their highest single-day gains on record. Throughout September, the Shanghai Composite Index has surged by over 17 percent, reflecting the market’s bullish trend.
On Monday, the turnover on the Shanghai and Shenzhen stock exchanges surpassed 1 trillion yuan for the fourth consecutive trading day. The market opened on a positive note, with the Shanghai Composite Index starting 3.47 percent higher. Similarly, the Shenzhen Component Index and ChiNext Index opened 4.58 percent and 5.77 percent higher, respectively.
This upward trajectory in China’s A-share market was ignited by a key Communist Party of China (CPC) leadership meeting that emphasized the importance of strengthening the country’s capital market. The meeting also underscored the active promotion of medium- and long-term funds into the market. Following this meeting, the Shanghai Composite Index closed above 3,000 points on Thursday, a significant milestone since July 2.
The fervor for stock trading overwhelmed the systems of stock exchanges and numerous securities firms. The Shanghai Stock Exchange (SSE) conducted comprehensive trading tests to ensure a smooth trading experience. During these tests, the bidding system processed a staggering 270 million orders, twice the historical peak and three times the orders received on the previous Friday.
Market analysts view this surge as a reflection of growing investor confidence in China’s economic prospects and the government’s commitment to bolstering the capital market. The recent market performance has drawn attention to the resilience and dynamism of China’s A-share market, positioning it as a key player in the global financial landscape.
As China’s financial markets continue to evolve and attract greater interest from domestic and international investors, the role of the Shanghai and Shenzhen stock exchanges as vital pillars of the country’s economic growth becomes increasingly pronounced. The ongoing developments in these exchanges reflect not only market dynamics but also broader economic trends and policy directions shaping China’s financial future.